SIE Exam Question 1027: Answer and Explanation

Question: 1027

____ The interest rate that banks charge their most credit-worthy customers, typically large corporations.

• A. Prime rate
• B. Discount rate
• C. Fed funds rate
• D. LIBOR

Correct Answer: E

Explanation:

The prime rate is the interest rate that banks charge their most credit-worthy customers, typically large corporations.